This research assessed the knowledge, motivation, and organization (KMO) factors which prevent prime contractors on local, publicly funded construction projects from hiring minority subcontractors (Clark & Estes, 2008). The impact of Proposition 209 (1996) was explored in this study. A focus on Proposition Q, a local initiative which provided $600,000,000 for funding the construction of municipal police stations and the renovation of fire stations, was the construction project examined for award amounts to six prime contractors (BAVN, 2017). Findings were that gaps existed in KMO influences of the research. The implications were public works construction projects could provide more economic opportunities for minority businesses, more diversity training by city staff was needed, development of a prime contractors' diversity awards program should be priority, as well as the execution of programs which promote certification, recruiting, and hiring minority contractors including African Americans and women. Also, a priority must be to insure subcontractors are paid on time. Overall, Proposition 209 had an adverse impact on minority business inclusion. Ultimately, federal legislation is the preeminent law; and, it requires equal protection of the law through creating opportunities for minorities to enjoy the same access to publicly funded programs as everyone else in the jurisdiction being served (U. S. Constitution, amend. XIV, 1868). The current U. S. Supreme Court landmark decision of Fisher v. University of Texas (2016) ratified that under certain circumstances race can be used to achieve diversity and reveals a challenge to California Proposition 209 which ties public college admissions, government jobs, and public contracting together. In the end, applying the provision in Proposition 209 to request a disparity study, which concludes in documented discrimination, will result in a set aside program mandated by the courts for the group affected.